The Asia-Pacific Automotive Composites Market is projected to grow with a CAGR of more than 5 % during the forecast period.
- The increasing global temperature because of the emission of harmful gases in the atmosphere by automobiles the demand for light weight components are rising as they are more fuel efficient and reduces emission of these gases in the atmosphere.
- Despite the downfall of sales in the passenger and commercial vehicles, the region still is the biggest automobile market in the world. With around 36 million passenger vehicles being sold in the region during the year 2019.
- However, because of the ongoing trade war between United States and China along with the confusion over the emission standards in the region, the growth in automotive sector is slowing down and the automobile sales are expected to witness a downfall for a couple of years until the end of trade tensions.
Key Market Trends
Trend to Decrease weight Driving Growth
Owing to the increasing pollution and decreasing air quality in the region, the demand for fuel efficient vehicles is enhancing in the region. The Auto manufacturers are investing heavily to reduce weight of the vehicle by using different polymers and fibers, to enhance the fuel efficiency of the vehicle and enhance demand in the region.
Composites, which essentially are composition of two of more constituent materials, form a substantial part of an automobile and, if smartly used, can lead to significantly lighter vehicles that are safer and more fuel-efficient.
Another benefit of using of using composites in automobiles is that it can be recycled and for the same reason recyclable bio-based automotive composites are being adapted for manufacturing automotive components.
For instance, in March 2019, McLaren has introduced chassis made from carbon fiber, this will reduce the overall weight of the car as the company develops its next generation of vehicles as part of its Track25 business plan.
China Remains the Largest Market in 2019
During the year 2019, the automobiles sales in the country witnessed a downfall and a total of more than 21 million passenger cars were sold in the country in 2019 and more than 4 million commercial vehicles were sold. Despite the downfall in sales China maintained its leadership in automotive sales globally.
With the presence of several major OEMs and component manufacturers in the country, and their spending towards research and development of innovative composites and materials to reduce the overall weight of the vehicle and increase the fuel efficiency is driving growth for the industry.
Owing to the increasing demand for automobiles in the country as well as globally as the country is a major exporter of automobiles to several parts of the world. the major players in the region are investing in expanding their production capacities to meet the demand and entering into strategic partnership to gain substantial market share.
For instance, in April 2018, Magna announced that it has entered into a joint venture with GAC subsidiary, GAC Component Co., Ltd., for production of composite liftgates for a global automaker's crossover vehicle. The joint venture will work out of a new 55,900 square-foot facility located in Changsha, China. Magna has an expertise in advanced materials and manufacturing, combined with GACC’s deep connection in the world’s largest automotive market, will be a winning strategic partnership for both players.
The Asia-Pacific Automotive Composites Market is fragmented, with many players accounting for a small market share. Some of the prominent companies in Asia-Pacific Automotive Composites Market are 3B-Fiberglass, Solvay, BASF, Teijin and others. The major players in the country are entering into strategic partnership with global leaders to gain considerable market share.
For instance, in February 2020, Anand Group entered into a partnership with Far-UK to development of carbon fiber composites. The collaboration will focus on bringing out innovative solutions suited for reducing emissions. The product has the potential for Light Weighting in vehicles by almost 50%, with strength matching that of high strength alloy steel at the weight of aluminum.
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